Arkansas seeks to consolidate area workforce boards at state level

The Arkansas Workforce Development Board is moving toward asking the U.S. Department of Labor for seven waivers to federal Workforce Innovation and Opportunity Act (WIOA) requirements. One would allow the state to consolidate its 10 workforce development boards into a single state entity.

The consolidation and other changes would redirect spending away from overhead and to training and supportive services, said Cody Waits, executive director of the Arkansas Department of Commerce Division of Workforce Connections.

Waits said the size of Arkansas’ WIOA federal grant is roughly $16 million annually. About 15% of that money goes to the state, and the rest is divided among 10 workforce development areas according to a formula.

He said only $2 million of the $16 million last year went to training and other supportive services. The rest went to overhead and administrative costs. He said federal bureaucratic burdens are the cause of some of the inefficiencies. The boards have other revenue streams.

A draft Combined State Plan for 2026-27 that would be submitted to the U.S. Department of Labor includes the waiver requests.

Under one of them, the Arkansas Workforce Development Board would carry out the roles and responsibilities of the 10 current local independent workforce development boards. Newly created regional business councils would maintain the local representation aspects. Closely related is another waiver request that would allow the state plan to act as a regional plan.

Waits said the Arkansas Department of Commerce is seeking to streamline governance and simplify how the state works with companies, entities and individuals around the state. The 10 boards have different rules, which can be a challenge for businesses operating in more than one area.

“These 10 areas would still exist,” he said. “So we would have to still spend money in all areas of the state. But instead of having 10 boards and 10 administrative entities and 10 fiscal entities and one-stop operators and board directors and all this, we would centralize a lot of that function here at the state while maintaining local offices and a local presence around the state to continue those services locally in the communities that we do today.”

Waits said a number of states already operate according to the waivers Arkansas is seeking.

In 2014 President Barack Obama signed the Workforce Innovation and Opportunity Act (WIOA) into law. It provides federal funding to states to help Americans with significant employment barriers find jobs.

The grants serve individuals such as low-income adults, out-of-school youth, individuals involved in the justice system, English language learners, people with disabilities, dislocated workers, veterans and transitioning service members, older workers, migrant and seasonal farmworkers, individuals experiencing homelessness, single parents, long‐term unemployed individuals, and others.

The waiver requests come after the U.S. Department of Labor under President Donald Trump distributed training and employment guidance letters describing the types of waivers for which states could apply, including the state board functioning as a local board.

The plan has drawn opposition from the local boards.

In an email to Talk Business & Politics, Dwayne Pratt, executive director of the West Central Arkansas Planning and Development District, wrote, “Local workforce boards are uniquely positioned to serve WIOA participants with a level of responsiveness and effectiveness that a statewide approach simply cannot match. By operating within the communities we serve, we understand the specific needs of local jobseekers, the demands of regional employers, and the economic conditions that shape workforce opportunities. This proximity allows us to deliver more personalized career services, targeted training, and meaningful employer connections for WIOA-eligible individuals. Strengthening local decision-making ensures resources are used efficiently and outcomes are aligned with real, on-the-ground needs — ultimately leading to stronger employment results and more resilient local economies.”

Pratt said he spoke for the eight local areas that are administered by planning and development districts, which would exclude the Eastern Arkansas and the city of Little Rock workforce development areas.

The 30-day public comment period began April 17 and ends May 18. The state Workforce Development Board will meet May 21 to review the comments and vote on whether to approve the plan. If that occurs, the agency anticipates submitting the formal state plan to the U.S. Department of Labor by May 29.

Another waiver request would allow the state to avoid establishing and maintaining at least one comprehensive center in each workforce area. Instead, the state would have more flexibility to use virtual and remote services, mobile units, and affiliated sites such as adult education centers and Arkansas Department of Human Services county offices.

Another request would let the state reallocate funding across local workforce areas based on employer needs or economic changes, or based on a program that consistently delivers strong results. Each area would still be funded based on a formula, but leftover funds could be directed to those areas.

One of the other waiver requests would allow the state to combine the Arkansas Workforce Cabinet and the Arkansas Career Education Workforce Development Board into a single statewide board.